Flat F&O as Dec expires

Finally, BSE Sensex closed at 21,075 up 42 points, while NSE Nifty closed at 6,279 up 10 points over the previous close.

The Indian equity market ended with modest gains on Thursday amid F&O expiry. Benchmark indices were stuck in a narrow trading range in the first half of the session, however, volatility picked up in the second half as the Sensex was seen gyrating over 120 points


Once again the broader indices were in demand outperforming the benchmark indices. The BSE Mid-Caop index ended higher by 0.5% and the BSE Small-Cap index gained by 1.1%. Among the other major gainers were, BSE Power, metals, consumer durables and banks.

State Bank of Mysore unveils new zonal office in Mangalore: Report

State Bank of Mysore has reportedly opened its new zonal office in Mangalore. This new office has administrative control of three regional offices and branches in Dakshina Kannada, Uttara Kannada, Udupi, Chikmagalur and Hassan districts in Karnataka, Kasaragod district in Kerala and Goa. The bank is also focusing on alternative delivery channels for growth.

State Bank of Mysore is the first Karnataka-based bank with fully networked branches. The bank embarked upon the latest Banking Technology platform by implementing the Core Banking Solutions (CBS) across all its branches, with an objective of providing banking convenience to the customers.

Tata Power surges on getting state electricity regulator’s nod to postpone solar energy target until 2016

Tata Power Company has received Indian state electricity regulator’s nod to reschedule fulfillment of annual solar-power procurement targets by as many as five years to 2016. The company, since 2010, has not been capable to arrange enough solar power to fulfill government renewable mandates due to shortage of sun-based generation in the country.

The government needed electricity distributors and large industrial companies to get as much as 10 percent of their power each year from renewables. In Maharashtra state, where Tata Power generates and distributes electricity, the company faced a solar procurement target of 0.25 percent that rises to 0.5 percent in the financial year starting April.

Tata Power is India's largest integrated power company with a significant international presence. The Company has an installed generation capacity of 8521 MW in India and a presence in all the segments of the power sector viz. Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.

Lanco Infratech proposes to sell assets worth Rs 7,612 crore: Report

Lanco Infratech has reportedly proposed to sell assets worth Rs 7,612 crore. The company is looking to sell 3 power projects for Rs 6,350 crore and road projects for Rs 668 crore. Further, the company will sell 1 solar and 1 real estate project.

Recently, in a major relief to cash-strapped Lanco Infratech, a consortium of lenders, headed by IDBI Bank, approved a corporate debt restructuring (CDR) package for the holding company. The decision to clear the Rs 7,000-crore CDR package and release Rs 3,500 crore towards working capital will enable the company to resume EPC (engineering, procurement and construction) operations, which were hit by a cash crunch.

Lanco Infratech is the leading integrated infrastructure conglomerate with global footprints having business verticals viz. EPC, Power, Solar, Natural Resources and Infrastructure.

ONGC’s overseas arm temporarily shuts down its Oilfield operations in South Sudan

Due to the deteriorating security situation in South Sudan, Oil and Natural Gas Corporation’s (ONGC) wholly owned subsidiary- ONGC Videsh has decided to temporarily shut down the operations in its oilfields. The shutdown was executed methodically as per its standard shutdown procedure, ensuring safety of personnel / equipments and smooth resumption of operation immediately after normalization of the security situation. Following the shutdown, the production from the oilfields was completely stopped from 22nd December 2013.

OVL in coordination with the Indian Embassy in South Sudan has evacuated all its 11 personnel posted in South Sudan. Other partners of OVL in the assets have also evacuated most of its personnel from the country. OVL is closely monitoring the security situation in the country and is in constant interaction with its partners in the assets and the Indian Embassy at Juba. Operations will be resumed once the situation is normalized.

ONGC Videsh (OVL) is operating in two producing assets in South Sudan through its Joint Operating Companies, Greater Pioneer Operating Company (GPOC) and SUDD Petroleum Operating Company (SPOC) with Participating Interest (PI) of 25% and 24.125% respectively. GPOC is producing close to 37000 bopd (OVL share 9250 bopd) from Block 1,2,4 and SPOC is producing close to 4600 bopd (OVL share 1100 bopd) from Block 5A . While the partners of OVL in GPOC are CNPC, Petronas and Nilepet, in SPOC OVL has partnership with Petronas and Nilepet.

Glenmark Pharma to launch first biotechnology medicine by 2017: Report

Glenmark Pharmaceuticals is reportedly planning to launch its first biotechnology medicine in the US or Europe by 2017. A biologic remedy for ulcerative colitis is progressing through US trials after being licensed to Paris-based Sanofi and may come to market from 2017 to 2020.

Further, the company is on track to grow sales about 20% in the 12 months through March 2014.

Glenmark’s current portfolio consists of 90 products authorized for distribution in the US marketplace and 53 ANDA’s pending approval with the USFDA. In addition to these internal Filings, GGI continues to identify and explore external development partnerships to supplement and accelerate the growth of the existing pipeline and portfolio.

Andhra Bank plans to upgrade five ordinary branches into Nextgen: Report

Public sector lender, Andhra Bank, is reportedly planning to upgrade at least five ordinary branches in Odisha into Nextgen branches by the end of December 2013. The Nava Shakti or the Nextgen branches would have a 24x7 cash receiving machine, self service passbook printer and ATM facilities. Majority of bank transactions at the Nextgen branches would be automated.

Andhra Bank has reported a fall of 78.30% in its net profit at Rs 70.65 crore for the quarter ended September 30, 2013 as compared to Rs 325.63 crore for the same quarter in the previous year. However, total income of the bank increased by 11.74% at Rs 3817.57 crore for quarter under review as compared to Rs 3416.55 crore for the quarter ended September 30, 2012.

Bond yields edge lower in range-bound trade on caution ahead of Rs 15,000 crore debt sale

Bond yields edged lower in the range-bound trade as dealers preferred to stay light ahead of Rs 15,000 debt sale auction. Further, uptick of bond prices is unlikely as investors continue to lighten positions ahead of the year-end, with concerns about the RBI resuming its monetary tightening remaining. Meanwhile, traders also await a report by the RBI due by the end of the month that is expected to unveil a major change in monetary policy to explicitly make managing consumer inflation, rather than wholesale prices, its main objective.

On the global front, U.S. Treasury prices fell on Tuesday with benchmark yields hovering near three-month highs as investors trimmed their bond holdings ahead of a shortened session before Christmas. Meanwhile, brent crude rose above $112 a barrel on Thursday, touching a three-week high, as civil unrest in Africa reduced supply.

Back home, the yields on new 10 year Government Stock 2023 were trading 1 basis point higher lower at 8.86% from its previous close of 8.87% on Tuesday.

The benchmark five-year interest rate swaps were trading unchanged at its previous close of 8.42% on Tuesday.

The Governments of India have announced the sale (re-issue) of four dated securities, including (i) 7.28 % Government Stock 2019 for a notified amount of Rs 3000 crore, (ii) 8.83 % Government Stock 2023 for a notified amount of Rs 7,000 crore, (iii) 8.32 % Government Stock 2032 for a notified amount of Rs 2,000 crore and (iv) 8.30 % Government Stock 2042 for a notified amount of Rs 3,000 crore, to be held on December 27, 2013, using uniform price method.

Additionally, the Government of India have announced the sale (re-issue) of "1.44% Inflation Indexed Government Stock-2023" for a notified amount of Rs 500 crore through price based auction. The auction will be conducted using uniform price method. The auction will be conducted by the Reserve Bank of India, Fort, Mumbai on December 31, 2013 (Tuesday).  

Sun Pharma gets US FDA nod for Sanfoi’s DDAVP Nasal Spray Generic

Sun Pharmaceutical Industries has received US Food and Drug Administration (US FDA) approval for Sanfoi’s DDAVP nasal Spray Generic, which is indicated as antidiuretic replacement therapy in the management of central cranial diabetes insipidus and for management of the temporary polyuria and polydipsia following head trauma or surgery in the pituitary region.

The use of DDAVP Nasal Spray in patients with an established diagnosis will result in a reduction in urinary output with increase in urine osmolality and a decrease in plasma osmolality.

Recently, the company’s subsidiary granted the USFDA final approval for its Abbreviated New Drug Application (ANDA) to market a generic version of Cymbalta, Duloxetine Delayed-Release Capsules USP, 20 mg, 30 mg and 60 mg. Duloxetine Delayed-Release Capsules USP, 20 mg, 30 mg and 60 mg are therapeutic equivalents of Eli Lilly & Company’s Cymbalta Delayed-Release Capsules.

Sun Pharmaceutical Industries is an international, integrated, specialty pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, US and several other markets across the world.

Fertiliser Ministry likely to propose hike in urea subsidy

Fertiliser subsidy on urea is expected to go up in near future as the fertiliser ministry is likely to propose increase of subsidy by Rs 350 per tonne in urea as against the industry’s demand for a hike of Rs 700 per tonne. Currently, fertilizer companies are demanding for more subsidy owing to the rising fixed costs of urea production, which mainly includes establishment cost, annual maintenance cost, working capital, salaries, interest and other items. India produces about 22 million tonnes of urea and imports around 8 million tonnes in order to meet the shortfall. Presently urea is sold at a maximum retail price (MRP) of Rs 5,360 per tonne to farmers and the difference between production cost and MRP is reimbursed to manufacturers in the form of subsidy.

Further, the ministry is also likely to modify New Pricing Scheme (NPS) Stage- III after factoring in rise in fixed production cost over the years. Scheme was approved by the government in 2007 and was based on cost of production for 2002-03. So far this fiscal, the Fertiliser Ministry has been allocated only Rs 70,586 crore funds towards subsidy payment to fertiliser firms against the total demand of Rs 1,05,497 crore for the 2013-14 fiscal. Commodity wise, a subsidy of Rs 41,158.85 crore was allocated for urea and Rs 29,426.88 crore for P&K fertilisers. Furthermore, most of the fertilizer firms are facing a liquidity crunch as the government has exhausted its funds towards subsidy payment on indigenous urea. Concerned over acute the liquidity crunch faced by the Indian fertiliser sector, the fertiliser industry has urged the Government to immediately allocate an additional Rs 40,000 crore to clear the subsidy dues for the current fiscal to help resolving the payment crisis faced by the industry.

Meanwhile, in September, the Finance ministry had agreed to pay only Rs 5,500 crore subsidy under a special banking arrangement (SBA) as against Rs 12,000 crore sought by the Department of Fertilisers (DoF) and also agreed to bear interest of 8 per cent per annum with 2.7 per cent interest to be borne by the industry.

RBI assigns State Bank of India to act as lead bank for 4 new Meghalaya districts

State Bank of India (SBI), the country’s largest public sector bank has been assigned to act as the lead bank in four new districts in Meghalaya by the Reserve Bank of India (RBI). The four new districts created in the state are North Garo Hills, East Jaintia Hills, South West Khasi Hills and South West Garo Hills.

Under lead bank scheme, each district is assigned to different banks to act as a consortium leader to coordinate the efforts of banks in the district, particularly in matters like branch expansion and credit planning.

Besides, the RBI also assigned the bank the district working codes for the purpose of basic statistical returns (BSR) reporting.

Torrent Pharmaceuticals gets US FDA nod for Epilepsy drug Lamotrigine

Torrent Pharmaceuticals has received US Food and Drug Administration (US FDA) approval for Epilepsy drug Lamotrigine, a medicine which is used in partial epilepsy, bipolar disorder, generalised epilepsy, Lennox-Gastaut syndrome and absence seizures.

Torrent Pharmaceuticals is flagship company of the Torrent group, a leader in cardiovascular and central nervous system segments. It also has presence in gastro-intestinal, diabetology, anti-infective and pain management segments.

Allahabad Bank spurts on fund raising plan

Allahabad Bank has received shareholders’ approval for a preferential issue of Rs 400 crore and a Qualified Institutional Placement (QIP) of Rs 320 crore for shoring up the equity base of the lender.

The bank will issue and allot 4,45,83,147 equity shares of face value of Rs 10 each at an issue price of Rs 89.72 (including premium of Rs 79.72) per equity share on preferential basis to government.

Further, the bank sought nod of the shareholders to access the market for issue of equity shares through Qualified Institutional Placement (QIP) aggregating up to Rs 320 crore in such a manner that government’s holding will continue to be at 55.24 per cent of the total paid-up capital.

Sambandam Spinning Mills’ promoter sells 14,000 shares of the company

Sambandam Spinning Mills’ A R Annamalai, a shareholder from company’s Promoter Group, holding 127,520 equity shares constituting 2.99% of the company has sold 14,000 equity shares of the company on December 23, 24 to meet his personal requirements. A R Annamalai is still holding 113,520 equity shares constituting 2.66% of the company.

Sambandam Spinning Mills started operations with initial capacity of 2000 spindles. It also operates wind energy converters located in the state of Tamil Nadu. Thus, it has its own 100% power generating capacity.

Bajaj Auto’s promoter entity buys shares worth Rs 60 crore

Bajaj Auto’s promoter entity -- Bajaj Auto Employees Welfare Fund -- has acquired over three lakh shares of the company for around Rs 60 crore through open market trade. Bajaj Auto Employees Welfare Fund bought 3,07,120 shares of the company from various entities including the company’s promoters -- Bajaj Sevashram and Jamnalal Sons -- at an average price of Rs 1,946 apiece.

At the end of July-September quarter, Employees Welfare Fund held 18.29 lakh shares of Bajaj Auto amounting to 0.63% stake. Jamnalal Sons and Bajaj Sevashram held 8.97% and 1.56% respectively.

Bajaj Auto is a $2.3 billion company founded in 1926. It is world’s fourth largest two and three-wheeler manufacturer. Bajaj Auto has three plants in all, two at Waluj and Chakan in Maharashtra and one plant at Pant Nagar in Uttaranchal.

Apollo Hospitals’ holding company buys 10 million shares of the company

Apollo Hospitals’ promoter family’s holding company PCR Investments has bought shares worth Rs 87.66 crore in Apollo Hospitals. PCR has bought 10 million shares at a price of Rs 876.67 a share.

The Reddys, the promoter family of Apollo Hospitals, hold around 34.35% stake in the company, of which 18.42% stake is held by PCR Investments while the rest is with individual family members, as of September 30, 2013.

Apollo Hospitals is the leading private sector healthcare provider in Asia and owns and manages a network of speciality hospitals and clinics, a chain of Pharmacy retail outlets across the country, and provides Consultancy Services for commissioning and managing the Speciality Hospitals.

BHEL secures order worth Rs 1,023 crore from Neyveli Lignite

Bharat Heavy Electricals (BHEL) has secured an order worth Rs 1,023 crore from Neyveli Lignite Corporation for supplying turbine generator package at a thermal power project in Tamil Nadu. The company’s scope of works includes manufacture, supply, erection, testing and commissioning of steam turbine generators & auxiliaries along with associated civil works.

Earlier, the company had secured orders from NLC for their 2x500 MW Tuticorin, 2x250 MW Neyveli and 2x125 MW Barsingsar projects.

Meanwhile, the company has established the capability to deliver power plant equipment of 20,000 MW per annum.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself by way of contemporary technology, state-of-the-art manufacturing facilities and skilled technical manpower. Significantly, the company has established the capability to deliver power plant equipment of 20,000 MW per annum.

IRB Infrastructure Developers’ arm achieves financial closure of Rs 1,406 crore

IRB Infrastructure Developers’ wholly-owned subsidiary - IRB Westcoast Tollway, has achieved financial closure in terms of the concession agreement executed with NHAI, by tying up of Project finance of Rs 1,406 crore. The total cost of this Solapur to Yedeshi section project is Rs 2,639 crore, out of which viability gap funding from NHAI of Rs 536 crore, equity contribution by the company will be approximately Rs 697 crore and remaining will be funded through Project finance of Rs 1,406 crore. The average cost of this Project finance is approximately 11.75% p.a.

A Consortium of Lenders comprising of IDBI Bank - Lead Institution, Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank and Union Bank of India have financed this project.

Besides, the vompany has now received an official communication from the National Highways Authority of India (NHAI) by way of a Letter of Award (LoA) dated December 24, 2013 whereby NHAI has accepted its Price Bid and has declared it as the selected bidder for the project of four laning of Solapur to Yedeshi section of NH-211 from km 0.000 to km 100.000 (Design Length 98.717 km) in the State of Maharashtra under NHDP Phase IV on Design, Build, Finance, Operate and Transfer (DBFOT) (Toll) Basis.

Amtek India to acquire business interests of Germany based Kuepper Group

Amtek India has entered into an agreement to acquire substantial business interests of Germany based Kuepper Group, through its 100% subsidiaries. The Kuepper Group is engaged in the business of iron and aluminium casting and integrated machining having 5 manufacturing units across Germany and Hungary. The transaction closing is subject to fulfillment of certain conditions.

Amtek India, India’s largest iron casting company, is a majority owned subsidiary of Amtek Auto, the flagship company of the Amtek Group.

Ashiana Housing receives lease deed for land parcel measuring 19,958.68 sq. mtr.

Ashiana Housing has been issued a lease deed / patta by the Urban Improvement Trust, Bhiwadi in state of Rajasthan in favour of the company for a land parcel admeasuring 19,958.68 square meters situated in village Rampura, Bhiwadi, Alwar district in Rajasthan.

This land will be utilized to develop Comfort Homes with a total saleable area of approximately 4.5 lakh square feet. Other approvals to launch the project are in the process.

Ashiana Housing is a fast growing real estate developer with its head office in New Delhi, India. The company has presence in group housing, active senior living, retail, hotels and facilities management.

Markets to get a green start of F&O expiry session

The Indian markets gave up their early gains going towards close in last session on profit booking. Today, the expiry of the December F&O series is likely to be in green, though lots of volatility can be seen as the trade progresses. There will be buzz in India Inc and the markets, as Mauritius has said that it has put additional safeguards in place for global business companies operating from its jurisdiction to ensure their substantial presence there and to boost its image as a preferred global financial centre. The traders will also be getting support with the news that revenues from service tax, the new focus area for the finance ministry, have grown over 300 times in the past two decades, besides, the number of assessees have gone up over 400 times since 1994-95. Meanwhile, Commerce and Industry Minister Anand Sharma has said that ban on mining by the Supreme Court has hit the economy and exports besides increasing India's dependence on imported coal.

The US markets ended mostly higher ahead of Christmas holiday, reacting to a pair of better than expected economic reports, though the trade remained somewhat subdued. The Asian markets have made a green start barring the Chinese index, Japanese Nikkei surged about a percent to a more than six-year high, while some of the markets in the region remained shut for Christmas holidays.

Back home, Tuesday turned out to be a lackluster day of trade for the stock markets in India, as the benchmark equity indices failed to hold on to the initial gains and settled the session slightly in the red in absence of any positive trigger. Frontline gauges swung between gains and losses, but in tight band, for day the investors preferred cashing out their profits ahead of the Christmas holiday followed by expiry of December derivative contracts on Thursday. Though, markets made a positive opening as traders remained optimist in early deals after the Commerce and Industry Minister Anand Sharma highlighted that India will achieve the modest export target of $325 billion for the current fiscal but to enhance it substantially, the country needs to boost its manufacturing capability. Global cues remained supportive as all the Asian equity indices, barring Taiwan Weighted, shut shop in the green terrain. European markets too made a positive opening. Back home, the rate sensitive banking sector remained under pressure as the RBI Governor Raghuram Rajan has said that fighting rising prices will continue to be its priority and a call on raising interest rates will be taken after factoring in more data. However, he said that the Reserve Bank will wait for next set of data on inflation and industrial growth before taking a call on interest rates. Meanwhile, software and technology counters too remained under selling pressure as Indian rupee continued to trade strong for yet another day. Sentiments dampened after Vedanta Group companies like, Sesa Sterlite, and Hindustan Zinc edged lower as the CBI registered a preliminary enquiry against Vedanta Group chairman Anil Agarwal and unknown officials in connection with alleged irregularities in the disinvestment of Hindustan Zinc. However, the losses remained capped as some buying was witnessed in realty space after Credit disbursement to the sector rose to 19.6% compared to last year, with 21% increase in disbursement to real estate companies and 19% increase in mortgages. Finally, the BSE Sensex lost 68.32 points or 0.32%, to settle at 21032.71, while the CNX Nifty declined by 16.10 points or 0.26% to settle at 6,268.40.